In today’s trading, oil prices fell to some extent on the New York Mercantile Exchange; this happened amidst the decision on the part of the Federal Reserve to scale back a monthly bond-buying program. Crude oil prices fell as light sweet crude futures for delivery in February traded at USD97.87 a barrel which is a decline of 0.18%.
Earlier, after hitting a session low overnight of USD97.31 and a high of USD98.26, WTI got hit in the Asian market today. This is in contrast to the earlier reports coming that West Texas Intermediate traded near the highest price in a week; this happened as crude stockpiles declined in the U.S. and the Federal Reserve said it will reduce stimulus.
In contrast crude prices picked up on falling U.S. oil inventories; however, this could not sustain for long. In fact, the U.S. Energy Information Administration reported in its weekly report that the country’s oil inventories fell by 2.9 million barrels in the week ending Dec. 13. It was by far beyond the expectations which led to an increase in crude prices.
As of the past week, total U.S. crude oil inventories stood at 372.3 million barrels. In the much appreciated way the reduction in the inventories meant that crude prices would go higher where the futures were little changed in New York after rising 0.6 percent yesterday. Nonetheless, U.S. crude inventories shrank by 2.94 million barrels in the seven days ending Dec. 13.
WTI Goes Higher
In electronic trading on the New York Mercantile Exchange at 8:57 a.m. London time WTI for January delivery, which expires today, was at $97.86 a barrel; thus, it rose 6 cents. On the other hand, Brent for February settlement also declined by 6 cents to $109.57 a barrel on the London-based ICE Futures Europe exchange amidst the concerns in Libya oil production, which is facing huge challenges.
Earlier, in the US, the world’s largest oil consumer which consumes more than 21 percent of global demand, started producing huge quantities of crude and stockpiled the same that led to a decrease in the crude prices this year. In other news, crude stockpiles at Cushing, Oklahoma, the biggest U.S. oil-storage hub declined to some extent and for that reason WTI recorded some gains.
In its statement the International Energy Agency, a Paris-based adviser to developed nations admitted that in couple of years, the U.S. will be a leading producer of oil and displace Saudi Arabia.
To contact the reporter of this story: Jonathan Millet at email@example.com